Technical Analysis and Trading Strategies
This is a highly participative 2 day programme designed for those who are working in the world of international finance, banks, asset managers and corporate treasury staff, who are involved not only in making investment decisions, but more importantly, in the timing of when to invest and when to hedge downside risk.
This programme is designed as an introduction to the concepts, theories and mysteries of Technical Analysis. We will review a range of examples and trading applications, and all terminology will be fully explained. No prior knowledge is assumed.
This programme will be conducted along workshop principles, with formal lectures, Case Studies and interactive worked examples. Each learning point will be reinforced with practical exercises.
Who Should Attend?
This course is designed as a comprehensive overview of the markets, trading techniques and focused upon the areas that are important to global investors, bankers and risk managers.
Participants can expect to take away the following:
• A comprehensive understanding of the way Global Markets operate, interact and link together.
• Technical Analysis techniques are looked at from both the Western (Dow theory) and Eastern (Japanese Candlestick) perspective.
• Financial instruments are discussed along with their uses and practical applications.
• Applications and Examples are used from all markets: Equity, Fixed Income, Currencies and Commodities
• The course explores trading techniques from both the analytical and psychological perspective.
• Trading is not gambling. Hope, fear and greed are not strategies, they are emotions.
• Hedging techniques and risk management will be fully explored.
Technical VS Fundamental Analysis:
• The market leads – a study of price action
• Dow Theory - the cornerstone of modern Technical Analysis
• The use of information systems and live market data
• The range of charts – line, bar, point and figure
• Japanese Candlesticks
• Direction and classification
• Reversal or continuation - pattern recognition
• Breaking the trend
• Support and Resistance levels.
The Technical Tools:
• Moving Averages - MACD
• Oscillators – The 3 main uses of oscillators
• The use of filters
Elliott Wave and Fibonacci
• Elliott Wave
• The basic 8 wave pattern
• Failures, extentions, corrections, alternations
• Fibonacci numbers
• Ratios and Retracements
• Applications and examples
Cycles and Cycle Analysis
• Wavelength, Phase, Magnitude, Amplitude
• Kontratieff and the Long Wave Cycle
• Gann- The Square of Nine
• Gann Geometric Angles
The Analytical Approach
Applications for Asset Managers:
• The use of technical tools for entry and exit points
• Uses with Equity, Fixed Income, Currencies and Commodities
• Risk Management – when and when not to hedge
• Hedge Ratios – static and dynamic
• Matching the investment time horizon with the technical
Japanese Candlestick Techniques
In Japan, more than 200 years before Western Technical Analysis techniques evolved, Candlestick Charting had been successfully used to assess market performance and psychology.
This programme is designed as an introduction to modern Japanese Candlestick Techniques, and should be used in conjunction with the course: “An Introduction to Technical Analysis”
No previous knowledge is assumed.
Japanese Candlestick Techniques
• The magic Doji
• Hanging Man and Hammer
• Harami and Harami Cross
• Dark Cloud cover
• Engulfing, piercing patterns
• Morning and evening Stars
• Abandoned baby
• Shooting Star and Invested Hammer
Additional Reversal Patterns
• The significance of the number 3
• 3 Mountains, 3 Rivers, 3 Buddhas
• Fry Pan Bottoms
• Tower Tops and Bottoms
• Tweezers, Belt Holds
• Upside gap two crows
• Counter Attack lines
• Gapping Plays
• Rising three methods
• Three advancing white soldiers
The Rule of Multiple Techniques
Trading Rules and Strategies – what to do and what not to do.
" There are no rules or principles however diligently followed that will guarantee success, only by aligning personality , hard work and discipline can the probability of long term success be improved "
Trading is not gambling
• Think scientifically and in terms of probabilities – not certainties
• Look at trends
Hope, fear and greed are not strategies – they are emotions
• Positive emotion means we may fail to apply risk measures
• Negative emotion could cause us to hesitate
• Greed acts more quickly than fear
• Missed opportunities exist only in your mind
Trading is a psychological game
• You are not playing against the market you are playing against yourself
• Be patient and wait for good trades
• Do not take a profit too early
Prices have memory
• Look at moving averages
• Big volumes kill substantial price moves
• Reversals build slowly
• Bottoms take longer to shape than Tops
Introduction and Market Background
• What is a trader?
• Different styles of traders and trading
• Your only objective is making money!
• Money management
• Thoughts on how to be a trader
• Key Success factors for trading
Analytics, Recommendation and Action:
• The Analytical Approach
• Impartial reasoned assessment
• The 3 A’s – Appreciation, Application and Appropriate advice
• The importance of stop losses
• Using Orders – not at the desk, but always in the market
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.